How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Jeff Meek who wrote (12126)	12/31/1999 1:06:00 PM
From: Tom K.	of 14162

...Your broker's requirement of 20% of the underlying seems very low.... Jeff, I fibbed a bit. Staying with OTM PUTs you can get the collateral requirements down to only 10%. Like OX pointed out, these are authorized levels. Now if your question is do I extend myself to the hilt and leverage everything, the answer is no. My target is only a 30% annualized return on my base so I don't have to take crazy chances..... but, I am clearly leveraged. By the way, I closed my QCOM PUTs yesterday for $15,000 in 4 days.... nice, but a far cry from those that rode the CALLs. I tried to do some more PUTs today, but couldn't get good prices on the web due to the split. The codes didn't seem to work and CBOE was too slow. Happy New Year and good trading in 2000. Tom

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